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The host of the Sunnyside Apartment suggested that the company improve its profit by the way of controlling the water flow by changing the showerhead. Although this argument seem reasonable at first glance, there are several questions needed to be solve in order to improve its convincing.
Obviously, whether there are noticeably numbers of complaints from customers cannot be fully reflected by the existing complaints. On one hand, customers may be reluctant about their disagreement because there is no convenience channel to expose their unsatisfied. On the other hand, the customer may change their way of using water. The total volume of the water used in shower not only depends on the flow of the water, but also depends on the time they wash. User can spend more time in order to clean their body, in this way, the added up electronic may even bigger than before, thus would save any water but also increase the electronic usage. Also the noticeable is, few complaints doesn’t mean there is no potential complaints, and since the new method only employed in three building, so even if the number is small, but the portion may be big enough to illustrate the potential danger to the company.
Consequently, actual readings of water usage before and after the adjustment, become of great importance to test whether the strategy helped to save water. Only when the actual number really proves that the method worked, will it be a beneficial and considerable method to improve profit. Otherwise, the company should also consider the cost of changing the equipment and showerhead, and evaluate the actual saving cost of the added up benefits rather than simply ponder the expected profits. If the total maintenance and construct fee is higher than the money saved by curtail water flow, the company will lose more profit and even their customer basement.
Most importantly, are there any examples of such cases? There are several problems the managers are required to consider further. For example, will this project result in a long term profit or only work in short term. If the front proposal is correct, them what’s the potential loss of the reputation of the company. However, if this only work to short term profits gaining, more facts needed to be provided and analyzed, e.g. customer average spent on using water. Only by provide better service will the company be able to make more money.
Although the method offered by the owner may bring more profit, however, there may be better way. In most of the cases, only innovation will help the company improve its efficiency and profits rather than simply eliminate the benefits of customer, because this may bring a negative effect to the reputation of the company. |
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